InfuSystem Holdings, Inc. (INFU) Earnings Call Transcript

[Audio Gap] For those who don't know me, I'm Glen Akselrod with Bristol Capital, an Investor Relations partner for the company. Just a quick reminder that today is not an earnings call and the purpose of this presentation is to give our audience a better overview on understanding of the business. through a presentation and then questions with management. The presentation today will be led by Carrie Lachance, CEO and who is also driven by Barry Steele, CFO. If you'd like to receive a copy of today's presentation, simply e-mail me at Glen glen@bristolir.com. We'll break for questions at the end of the formal presentation. When we do break, we encourage those questions. [Operator Instructions] I'll read the questions on the air for everyone to hear and Carrie or Barry will then answer. I'm not going to reference any names, but simply read the questions asked. And as a reminder, we're only going to take questions through the webinar portal. If you're listening over the telephone, please access the liked earlier today. I'm not going to read the -- sorry, I'm not going to read the forward-looking statements, but simply state that they apply and refer to them on Page 2 of the power point. With that said, once again, thank you for joining us. Remember, this is fairly [indiscernible] and we do encourage questions to help you better understand the business and its growth path. I'll now turn the call over to Carrie to start the discussion and presentation.

Thanks, Glen. I appreciate it. I just want to take a couple of minutes to introduce myself, and I'll kick it over to Barry to go over his background as well. So Carrie Lachance, CEO of InfuSystem. I've been with InfuSystem about 16 years, actually, 16 years this month. Prior to MPSystem, my background is nursing. So I am still a nurse. I think that's important as we are a health care company. And -- and so we look to drive this business with a patient-first mentality. So everything, every decision we made, we have to keep the patients in mind certainly. So I joined InfuSystem 16 years ago, actually as a sales rep, I ran our Northeast territory, our Boston territory. Some of our largest customers are in the Boston territory. I think that's also important to know as -- from a sales perspective, it's beneficial to understand how we win our clinics, right? What we're doing for clinics, what they need from InfuSystem. So to keep that in mind to continue to grow this business is really important. So I think those 2 pieces are a key to how I decide to -- and the choices we make to drive this company. So I was a sales rep for several years and ended up [indiscernible] some back-end changes of the company ended up taking over our customer service department which led to our clinical department as well. And in 2019 was appointed as Chief Operating Officer of the company. So I ran as Chief Operating Officer with our prior CEO, and Barry, to make decisions over the past several years. until May of last year when I was appointed CEO. So it's been a busy 14, 15 months in this role. Barry and I are certainly driving the company differently as we have in the past, and we'll get into some of that during the during the slide. So with that, I'll kick it over to Barry.

Thanks, Carrie. I'm Barry Steele. I'm the Chief Financial Officer. I've been with InfuSystem for 6 years now. Prior to joining the company, I worked in -- as a CFO or a couple of different companies that were automotive suppliers, 1 company called Gentherm, I joined the company when it was about $20 million in revenue. And by the time I left, we were about $1 billion. So I've been through growth experiences, and that's what I joined InfuSystem, what we're trying to do here and what I look forward to.

Perfect. Thanks, Barry. So who are we? Who is InfuSystem? So truly a home health care services platform, our core is really the durable medical equipment space. So we like to say we're the DME of choice for patients, providers, physicians, hospitals and the payer. Our markets are really oncology. We are in wound care and lymphedema. We'll talk a lot about the lymphedema space as that's a growing space today and do have some platforms underneath that, such as biomedical services and some rentals and supply sales and distribution as well. So today, we're about 450 employees covering about 4,500 customer locations individually throughout the country, as you can see them up here on the right-hand side. We do so through 7 centers of excellence. We have 6 within the United States and 1 in Canada covering again, those 4,500 customers. We do have a large device fleet, again, durable medical equipment. So we need a large device fleet to maintain all of those products for our customers, 100,000 devices, mostly ambulatory infusion devices, some regular hospital infusion pumps as well. Infusion is our specialty today, but we do have other devices such as EKGs, ESUs and other ambulatory devices that hospitals use. From a market perspective, our core is really oncology. It's how we started. We've been in the business for 40 years, started as an oncology company. We do have 70% market share from a patient perspective in the market for patients that are going home with their chemotherapy on an infusion pump. We do service 18 of the top 20 U.S. hospital systems, and we do all of this through our 800-plus payer contracts. Again, we're a durable medical equipment company. Coverage is vitally important for the amount of growth we have, the new products that we can come -- bring on board. And so our 800-plus payer contracts are certainly important to cover the 97% of patient lives within the country. So we are a growing company, very strong financial performance. We are in our seventh record year of growth for the company. In 2025, $143 million in revenue, $31.5 million in adjusted EBITDA. We are expanding our margins. As I said, Barry and I are running this company a little bit differently today. We are focused on not just revenue for revenue's sake, but revenue with profitability. Our margin are expanding. We'll get into some reasons for that here shortly. And we are a very strong cash generating company as well as great liquidity. So why invest in InfuSystem. As I mentioned, we have this core of DME, right, this really strong DME company with other platforms and growth factors underneath that. So not just within oncology, but adding new platforms, adding new services underneath that really core of what we are doing. Again, 7 consecutive years of growth. and capital efficiency expansion into some other areas, again, Wound Care, the lymphedema market. Lymphedema space is an exciting space and a growing space today. We'll talk about that as well. And again, $58 million in liquidity to support our growth. We have a very large fleet as we look to -- get into new products. We have the cash that we're able to support growth opportunities to include tech acquisitions if we see the need, if we see the opportunity, certainly from a diligence perspective we're a little bit picky on who we do look at from a tuck-in acquisitions perspective. We do have expanding margins. We have been investing infrastructure in the company to be more efficient to be able to scale faster. We have a new ERP that we just implemented, a new revenue cycle system, that we also just implemented, which has been allowing us to bring in and scale faster without necessarily adding headcount. We also are shifting towards less capital-intensive opportunities within the platforms that we are, oncology, as my example, it's a little capital intensive. We have a lot of devices that are needed to maintain that equipment and send more equipment out to hospitals, some of the newer businesses that we're looking at, and we're aimed at continuing to look at areas that are less capital intensive. So for instance, in Wound Care, in our Lymphoedema space the new DME market that we involved in, we don't have to own that device that eats actually paid for by the insurance company for the patient and the patient owns that device. So we'll get into that a little bit more as well. Expanding margins, 21.9% for fiscal year 2025 with a long-term target of 22% to 25%, and we're comfortably in that [ 22% to 25% ] this year, and we'll talk a little bit more about our margin expansion here shortly. We do have a derisked revenue profile. So we have no one customer that represents more than our total -- or 10% of our total revenue. Our Medicare exposure is far beneath 10%. We have no contract that's more than 10% of our revenue that comes in as well and multiyear payer contracts. We've had some of our contracts for 30 to 40 years. We have great relationships with our payers. We have most of the overhang from a DME perspective is there's a worry for reimbursement cuts. What we can see from our payers are increases in our rates every year. We have actually increased our cash per pump, for instance, in oncology over the years. We aren't everything to everyone. So we're not a DME that provides wheelchairs and crutches, et cetera. So we're kind of niche markets. Our payers enjoy that. We're certainly a compliant company. And so we have these long-standing contracts to provide predictability and visibility. So certainly a de-risked company to invest in. And then we have a certainly a hard-to-replicate competitive moat. Challenging for our competitors to become InfuSystem. We own the market from an oncology perspective for ambulatory infusion and hospitals. So they're sending their patients on electronic infusion devices going home. We have our 800 payer contracts covering the majority of the patient lives and really deep relationships with 1,800 oncology practices in large hospital systems. When I say deep relationships, I really want to share that we partner with our hospitals. Again, I gave the example that I was a sales rep when I started with this company, our sales reps really don't go to the waiting room and they're waiting to get into that practice. They have deep partnerships where we're helping our clinics. We have badges to get in and out of maybe a pharmacy or a nursing department and really partner with that clinic take care for that patient and take the burden off of the management of everything we do for that clinic. So certainly a barrier to entry for others that are coming into the market. So we do have 2 sides of our business. We have a shared platform in the background, but we have our Patient Services segment. You can think of our Patient Services side of our business are really anything that is insurance payer paid for. And so our oncology DME services, Wound Care, compression all of those type of DME, true DME into the patient home services paid for by insurance are really our Patient Services segment. And [indiscernible] solutions are really long-standing contracts to provide biomedical report both to hospitals as well as manufacturers throughout the country that might be through one of our 7 locations and 7 centers where we may repair from a Biomed perspective other people's devices, a hospital's devices or sending our own fleet of technicians into the field to service on site. So those all belong to our device solutions as well as rentals and sales. Our really robust band platforms. Our clinical service supports both segments, our biomedical services, right? They they take care of our customer devices as well as that 100,000 devices that we support our Patient Services and have as a DME perspective. So we have this robust shared services platform in the back end, allowing us to continue to scale and grow efficiently. So for a revenue platform economics, Barry, shortly, we'll get into really the margins in the economics between the 2 sides of our business. But for patient service, it's really the core of what we do. 60% of our revenue does come from Patient Services. It is the higher growing area that we see today. This is repetitive. Our oncology, it's a very stable business. Patients are on our [indiscernible] 6, 8, 12 months, sometimes it can be really years from a wound care and a compression durable medical equipment, these patients are on a repeated cycle, and then we're seeing some massive growth into -- and I'll use compression. I talk about lymphedema. I'll talk about a little bit more higher-growth areas. Again, we own most of the market in oncology. So it's a very solid, very repetitive business for us, but it's not a fast grower for us because we do have so much of that market. The new markets, again, that's our stability. However, the new markets offer some faster growth. On the Device Solutions side, 40% of our revenue, again, equipment rentals, services direct to facilities. Those are multiyear agreements, both with hospitals. Sometimes that's a rental for thousands of infusion pumps say, to a home care company, or the service of and maintenance of devices for even our manufacturers. We do have manufacturer partners that utilize InfuSystem as their arm from a biomedical perspective. So between the 2 sides of our business, very -- a lot of synergies between the 2 offerings Again, if I go into an oncology clinic, they need biomedical services. We're able to bring our biomedical services team into there. So it's certainly a lot of synergies between our 2 platforms. So what exactly do we provide in each of our platforms. For Oncology, really, we allow a clinic, all of the pumps that they need to safely and effectively get their patient out of the hospital, out of the infusion suite and into the home. We do offer clinical support. And so as a large infusion center, you have a patient on a pump, on a device in the middle of the night. The last thing you want to have is a bunch of nurses that you need to have on call. We actually handle all of that for patients. We offer a case management program under oncology to allow education for patients, and so to ease the burden of, again, everything around that device getting to that patient to the home safely and effectively for their oncology infusion, their chemotherapy. These are long-term infusions. They can be anywhere from 46 hours to a week at a time. And so important to have that clinical support for patients in the background. From a Wound Care perspective, very similar. In Oncology, we do get that device to a clinic and it goes out from the clinic or in the infusion center. In Wound Care, we get that device direct and in lymphedema direct to that patient. We do have a few partners under our Wound Care and specifically in negative pressure. One of our larger partners in this space is Smith+Naphew. We have a great relationship with Smith+Naphew. From the lymphedema space, I'll talk a little bit more about lymphedema. We have a few new partners in that space. It is an expanding space. The lymphedema market is a chronically underserved market in our country. The nice part is health care is headed towards the home and we're -- health care is also headed towards preventative care for patients. If you can prevent disease, you can prevent added cost in the long run and further complications. So lymphedema, there are millions of patients in the country with lymphedema. Chronically, and prior to 2024, there wasn't reimbursement around the treatment for lymphedema. In 2024 January of 2024, something called the patient treatment Lymphedema Treatment Act was enacted, which really established reimbursement for patients with chronic lymphonema in the country. It really took off in 2025. We joined our first partner in the lymphedema space in 2025, added a new partner this year in 2026. And what we can see is a lot of expansion and growth in that market because of that new reimbursement and because it's such a chronically underserved market. So we're really excited about the lymphonima space and the care and the opportunities that are happening in that space. So I look forward to talking about that more. Under Wound Care also advanced wound cure dressings and supplies. So as patients go home they're going on a negative pressure with therapy device for maybe a chronic wound, they may be a diabetic, something like that. They're not healing well. They also need advanced wound care dressings. Again, all reimbursable, all often cyclical. And so they're on these devices for several months at a time. And then in Pain Management, the opioid epidemic is a real concern in our country. there are very so much to oncology. There are infusion pumps and nerve blocks that patients can go on versus getting an opioid is they get a post-op surgery, they go home with a pump versus a prescription for an opioid. So we've been in this market about 10 years and are happy to assist with the opioid epidemic care inventory to prevent patients from needing those opioids. So for Device Solutions, again, biomedical service is a big piece of what we do. A lot of them are within our 7 service centers, preventative maintenance, repair of devices, again, service arm to a lot of our manufacturer partners in oncology for some of the oncology infusion devices out there. And then certification as hospitals need all of their equipment certified, it's a little bit challenging for them to attack maybe 5,000 infusion pumps. Usually, a hospital has a few biomedical technicians. They can't ship a bed right or a stretcher. So they need their biomed technicians to fix equipment in the hospital that has to maintain in the hospital. So they can send us devices to one of our service centers. We can send a fleet of technicians out to service all of their equipment at one. So a big piece of what we do on Device Solutions. And then also device rentals and sales, these are long-term contracts that we have for rentals and sales. If you think of a hospital, they may have 5,000 infusion pumps for flu season, they may need an extra 1,000 infusion pumps. They probably don't want the capital outlay to invest for our short term. So they end up renting devices from us. It could be a few devices, it could be a few thousand devices. We maintain that equipment for them. The nice part for InfuSystem, those become long-term rentals. They just never end up pulling that back out. So the device rentals with sales, it's a great opportunity for us to maintain that relationship with that hospital which allows us then the consumable sales as well from a sales perspective. So how do we create value kind of to our stakeholders? For hospitals, oncology practices, physicians and clinics, again, we ease the burden of getting the devices, the supplies that they need, really to have them on their shelf at the time they need them when they need them to get their patients treated and out the door, not only to have it, but really to help them choose what type of device. We are device agnostic. We have every pump on the market. And so we can help physicians and clinics to best suit what will help them to treat their patients. We also offer that flexibility that if they choose a device that isn't working for them, they can shift it back to InfuSystem and we can put a different type of device in there. It's a purhase there on equipment that wouldn't happen. In addition, as you think of durable medical equipment for hospitals, oncology practices, those physicians, those clinic practices it's no cost solution for them. So we reduce their capital expenditure because they don't have to buy these devices for their patients, which is perfect. For patients, again, we had that case management program. We have our 24/7 clinical care to answer if they have any issues in the evening, in the nights or any time or for our clinic, certainly, we have our clinical nursing service that answers that. Patients are happier in the home, they heal better in the home. It's better than certainly being admitted for those long-term infusions. And then for payers, we lowered the total cost of care in all areas and avenues that we are in. It's cheaper to get a patient, health care is moving to the home in we live very nicely in that space. So as I mentioned, we are transitioning from an investment phase to margin expansion. Barry and I are very focused on profitability for the organization. There's a few things that are expanding our margins. First and foremost, we have been investing in an ERP solution. Our prior solution was end of life. We need a new system. And so we've been going through that process of a new ERP. It did go live in March of this year. We're very happy to say it was a successful launch. We are still continuing a little of that spend and Barry will get into some of the specifics around the spend here in a couple of slides. We are -- we do see some opportunities to continue a little bit of that spend for improvements within the system, which has been great as well as our revenue cycle system. So DME is a -- there are a lot of claims that come in. It's a lot of manual work. It's been previously a very headcount-heavy type of business. What we had is an older antiquated revenue cycle system we had and around for 40 years. And so we were looking for a revenue cycle system. We did implement a new one. It's specific today for Wound Care and our new emerging therapies. We are working through the process to get that into oncology. What that allows is machine learning, some AI technologies, so capabilities to allow us to process claims faster, process claims more efficiently, drive scalability in the future for our organization. You can see that certainly today with the amount of wound care growth that we've had over the course of the past year, and I'll get into some numbers, but we grew Wound Care 103% year-over-year this year, that's all with the fact of that revenue cycle system, expanding that into oncology throughout the end of this year. We're hopeful by the end of the year to continue expansion and abilities to bring in new products. Scaling revenue without scaling costs, again, we are looking at contract optimization as well. So from a contract perspective, we always want to make sure that everything that we're doing makes sense and it is profitable. We did -- we are shifting out of or did shift last year. You actually see that in the pro forma revenue and Barry may talk about that. We did shift out of a nonprofitable contract, a little bit of a nonprofitable contract. We restructured that contract for profitability, had some price increases on that this year. That was with GE Healthcare. So you'll hear that as you learn about NP system. And we are, again, really focused on trying to shift out of capital-intensive businesses into less capital-intensive businesses such as Wound Care and our compression space. And what that's doing for us is, again, expanding our margins. So again, we were 21.9% in 2025, goals of 22% to 25% for future forward and beyond. And you can see that we're certainly there today in 2026.. So [indiscernible] expansion beyond oncology. Again, we started as an oncology company 40 years ago. We have proven very well that we're able to take this kind of platform and under us and add new products and add new devices under that, utilizing those 800 pair contracts that we have to continue to grow our business, again, in some of these more rapidly growing areas. For Wound Care, as I mentioned, our revenue in Wound Care grew 103% year-over-year. Q2 up 25% to Q2 up [ 20% ] to index our lymphedema grew 154%. So -- these are expanding markets. They have a faster growth or underserved population. And so we're really excited about kind of expanding into these newer emerging markets. pain management. Again, we've been in that business for 10 years. It's very stable, and it's been very successful for us. So like to tuck-in acquisitions. We have had a couple of successful acquisitions over the years in 2021, we purchased or acquired 2 small biomedical company that allowed us some of that experience and ability to service our technicians in the hospital. So we send out that really strike team, it's all of that equipment that gave us some of that. Give us some additional capabilities in devices that we didn't prior service prior. So we also had a a small acquisition of a company in 2025. That actually brought us that revenue side system that we're talking about, that's allowing us some technologies to help us to scale faster. So we're very diligent and I'd say pretty picky on who we're looking at from a DME perspective or an acquisition in general perspective, we wanted to be immediately accretive if it's something that we are interested in doing certainly. And then our repeatable platform expansion model, we have a great core, we have all of these services on our back end, our clinical, our warehouses, our depots, our biomed and really can continue to add new partners to our business without adding a lot of incremental cost. Our competitive moat, by far, our payer contracts is really the -- one of the biggest competitive moats around our business. 800-plus payer contracts. A lot of hospitals utilize regional DME, a lot of manufacturers might need to utilize regional DMEs to continue -- to get a patient out of the hospital into the home with their product. What we offer is coast to coast. We offer coverage for all patients, certainly, and on that ability to make sure that we can get that device also to that patient with our back-end services. Embedded in clinical and reimbursement workflows, we really have a stickiness with our customers. Again, as I said, not just a distribution company. We really are partners in the care for our clinics, our oncology clinics, our wound care clinics. We have API connections with a lot of our partners. We have EMR connectivity with a lot of the hospitals that we're working with. We get our [indiscernible] direct versus a manual heavy lift of faxing and referrals for us. And then the same goes our payer contracts. We are connected electronically often, so which creates a stickiness around our business. Our scaled platform again, detain relationships across the country where we saw the 4,500 hospitals, really deep relationships and long-standing contracts with those hospitals. And that reusable asset model, we have the 100,000-plus devices that's really hard to replicate. It took us 40 years to get to that number and for somebody else to come in and want to replicate what InfuSystem is doing, that's a lot of capital outlay certainly. And so we have our 3 complementary growth engines. I'll talk again about our core, very important for us, our oncology some of these long-standing businesses that we've had. It does fund our expansion and our growth. It's very predictable. We can see it. We -- once we win an oncology clinic, for instance, we don't really lose that, we lower their costs. We help them. We partner with them to get their patients well cared for making their lives easier and certainly more cost effective. Expansion growth. These are the new areas that were headed into Wound Care preventative therapies like pneumatic compression. That is that lymphedema market, certainly. And there are other markets that we have our eye on as long as it fits into our platform, right? We have these tools now on the back end our revenue cycle system that allows us to bring in and partner with other manufacturers and other products efficiently without adding that headcount. So it is allowing us to scale at a faster pace, and we're really excited about that. And then from efficiency and margin, again, we're going to look at our contract. We're going to continue to head into noncapital-intensive businesses. We like some of the markets that we're seeing. We're going to continue to look at our contracts. We know where we're going to -- we know know where we struggle. We can see that ERP is actually helping us a lot to to see, from a financial perspective, what's making the most sense for InfuSystem and what do we have to tweak slightly to continue to expand our margins. And with that, I got to kick it over to Barry.

Thanks, Carrie. We'll go through here as some of the financial metrics and the trends that we've seen. We'll stop at the sort of the top left. This is our revenue over several years. You can see that, as Carrie pointed out, we've had many years of continued revenue growth. It's actually over the last 5 years, it's been an 8% annual CAGR. And you see that in 2026, it looks like it's flattened out a little bit, but that's the impact for the GE Healthcare contract Cary mentioned. We restructured that contract. We gave back about $7 million in revenue, but we cut even more costs. So that's -- as you see, the margins in a moment, the margin percentages, we see some improvements from that, having done that. That's why we express our guidance for 2026 as a pro forma growth number because we're adjusting for that change and that guidance for this year is 6% to 8% of revenue growth. . Turning to our EBITDA. As you can see that we still have in the trailing period here shown a little bit of the COVID benefit that we had back in 2021 and 2020, appearing on the screen, but you'll see that we went down a little bit as we gave some of that revenue and profitability coming from the things that we did to support the COVID era. And you see that just a continued expansion for EBITDA as we go through time to support go along with the revenue growth. As we look at 2026, and we'll get to the margins in a minute, our guidance for the profitability is to deliver that mid- to low 20% range, which is, as you'll see a significant improvement over where we've been recently. Just turning to the 2 graphs on the lower end here, you can see that the revenue growth has happened in both segments, both the Patient Services segment and the Device Solutions segment with the exception of a Device Solution the GE Healthcare impact specifically in that segment, and that's why you see the numbers coming down for 2026 on a trailing-12 period for Device Solutions. I want to switch the slide, Carrie. All right. Now turning a little bit to our margins. You can see the gross margin on the top left, as we invested in some new businesses, particularly the Biomed capabilities expanding into the ability to provide services into the field. our margins came down a little bit, but they have been improving since we did that launch and that's has been getting better and better. If you look at adjusted EBITDA margin to the right, you can again see that as we came off of COVID we definitely gave back some of our margins. And then in '22, '23, we started investing in some of the new businesses, but like Wound Care, things that we're seeing the benefits of today. And then over the last couple of years, we've been significantly expanding those margins. And to the level that we see today which, we believe, is very solid, very sustainable. We don't expect to see a downturn in our margins. We do think that catalyst for improved margin expansion are the benefits from the ERP we invested in, and we went live earlier this year and the revenue cycle system, both Carrie mentioned, those should help us be more productive as well as the catalyst to top line growth. And then 2 [indiscernible] just the distribution between -- for margins between the Patient Services and the Device Solutions segment. The Patient Services segment has a much better gross margin. It does have a little bit more G&A that goes along with it. Our revenue cycle, some of our clinical costs and other things do support that business a little heavier than the Device Solutions. As you can see Device Solutions as we invested in expanding our capabilities for providing Biomed services in the field. Our margins came down a bit and now have been improving as we -- particularly as we adjusted that GE contract. I want to flip there, Carrie. Just a quick quick view, a couple of points I want to make on this slide, just basically the same data showing in a quarterly fashion. And you'll see that on the left -- for the first time in many, many years, we actually had a decrease in our revenue that was in the first quarter. But as we got into the second quarter -- by the way, that was the driven down by the adjustment for the GE contract, which started -- that adjustment started in the first quarter. But you can see we've already recovered from that and the revenue growth was positive again by the time we get to the second quarter of this year. Turning to the right, a couple of points I'll make on EBITDA, and that is that our first quarter always is a little bit lower EBITDA, something for you to be aware of, as we continue to report each quarter. There's a couple of reasons for that. Our collections and Patient Services is a little bit lower, co-pays and the deductibles drive that down a little bit, and we have a little bit heavier expenses in the first quarter, things related to our audit and some marketing expenses usually hit that quarter a little bit heavier. One thing -- one last thing to point out is that you'll notice that since carry took over, the columns are much bigger in all periods. That's the last couple of years you see there, the light blue and the orange. So definitely been working hard to get things in a much better shape. Last -- flip the slide here. Just a few comments on our cash flow balance sheet. We have just a little bit of debt, a very modest amount, very small leverage 0.61x our outstanding debt-to-EBITDA. We do have -- our debt is consisting of all revolver facility led by JPMorgan Bank and then a few other banks, very solid bank, very supportive of the company. The $20 million that we have drawn is protected by a currency swap we put in place during COVID actually, so we have a very low interest rate that goes to a couple more years of protection as we in the news about interest rates going up. We are definitely sitting in a good position because of our low amount of debt, and then the fixed amount of that -- the graph on the right shows you how much fixed date we have. This is as of June 30 versus what the variable portion was. So because the revolving facility is a $75 million facility, that along with a little bit of cash we're carrying gives us total liquidity. Not that we necessarily need that liquidity because if you can see the operating cash flow here certainly, all the growth plans that we have can be completely funded from our operating cash flow. In fact, over the last couple of years, we've bought back about $15 million of our own stock as a way to keep our cash working for us. You see there's only a very small amount of cash on the balance sheet. And as of June 30, it was $1 million. The reason for that is that we have all revolver facility, as I mentioned, and we pay down cash every day. we're very efficient on cash. We don't have popular cash stranded in foreign countries or anything like that. So we're able to carry a very small amount of cash, but still have a significant liquidity through the revolver and a very strong bank group. One last thing to point out is that we do have a -- there are some periods where we generated some net operating losses, 10 years ago, we still have a little bit of that left that protect some of our cash flow, and it's -- for the next year or so, we'll have a -- we do have some protection on being a cash tax payer, but then it will be a cash taxpayer. You want to flip the slide there, Carrie. I see just some high level. We are traded on the New York Stock Exchange American. About 20 million shares outstanding offloading in the marketplace. There's -- we're pretty wildly distheld. The market cap there is actually -- we're a -- after this -- this was a June 30 slide. We're about $150 million -- sorry, $250 million in market cap, the stock is trading in the $12 to $13 range now. If you look at the bottom left, capital allocation strategy is really to prioritize investing in ourselves and could be acquisitions. We've been very disciplined, only done a couple of small acquisitions, but that's company something we look at. And then the analyst coverage, we have 4 at sell-side analysts cover the company. That's it from my side.

Thank you, Barry. Yes. Thanks, Barry. So just quickly on our leadership. Again, for us, from executive leadership perspective for a small but mighty team. I would like to say we come from a vast array of backgrounds from health care to to be were, again, automotive and certainly from a growth perspective for the company. I'd be remiss to not talk about the leadership under us. We have a very capable very qualified. They understand our business leadership team beneath the leaders, the executive management here. So very strong, very driven team that are looking at executing on our strategy as we are. And then a very supportive Board of Directors with a variety of backgrounds. Again, from governance to health care. We have a very supportive Board of Directors as we're trying to execute on our strategy to partner and support us in that. So I'll wrap it up with why InfuSystem. Again, Healthcare Services platform, 18 of the top 20 U.S. hospitals are massive payer contract portfolio really is one of the moats around our business, very hard to replicate, certainly our device fleet, 40 years foundation. We're not an idea company, right? We're not just out there. We're very stable. We have deep relationships with our customers. This massive core within oncology, and then obviously, multiple paths to growth, new products, expanding into Wound Care and lymphedema. Lymphedema space really is exciting. There are other opportunities, other partners, other products that we can take our core background and expand into our visible margin expansions. We are running a better company today is what I'd like to say we're focused on profitability. I don't want revenue for revenue's sake. I want revenue and profitable growth, certainly. So working at and driving efficiencies to expand our margins. Derisk revenue base, again, no customer, no contract bigger than 10%, well distributed amongst our revenue today. Strong balance sheet Barry just went over. And then an experienced leadership team certainly aligns with our shareholders looking for growth at this company, but certainly profitable growth. So with that, I think we're ready for question and answers. I'll kick it at you, Glen.

[Operator Instructions] So first question, Kerry, is it looks like you guys have been around since going back to 2010, only started to gain real traction in 2019. Can you just give a little bit of background of what was happening between '10 and '19 and then what happened in '19 that actually caused the business to really take off?

Yes. So as I mentioned today, this year, actually is our 40th anniversary, so who've been around a long time. 2010 is actually when I joined the company. So I can think we actually acquired a small biomedical company. We were prior to InfuSystem really just a DME company, just that core of oncology, started in the garage of our founder. And so in 2010, right around that time, we purchased a company called First Biomedical, we expanded in 2010, which brought on our biomedical services as well in 2019. So we filed over that market, we were starting to dabble into biomedical services, and in 2018, 2019 is time frame, our largest competitor, there aren't a lot of companies that do what InfuSystem does. We fight over -- maybe Elastomerics might be a big, strong competitor. in around 2018, 2019, our largest competitor, they were acquired by McKesson actually, and they exited the oncology business for as far as providing oncology pump infusion supplies as we do as a DME provider. So they got out of that business. So we won that business. So we see that spike in 2018, that really is that large competitor in the market. They were called MSD, they got out of that market, and we won all of that business from them. which is, again, why we have a good portion of that. We had a good portion prior, but that 70% market share within oncology. There aren't a lot of other customers or companies, DME companies that service oncology like we do. Hopefully, that answers that question.

How would you rank the factors required to achieve the upper end of the long-term EBITDA target of 22% to 25% and I'll let you answer that and then I have another question.

Okay. Perfect. Barry, do you want to take that?

Sure, absolutely. So the catalyst that we believe that will drive margins are a couple of things. One is that we invested in ERP, we should be able to start to get some efficiencies and improve the profitability and our revenue cycle. Those are investments we've made. We're still working on some things that will help improve our profitability and manage our costs quite a bit. As we look at where we see growth, we do see that some of the new products that are coming in and opportunities like lymphedema are a little bit lower gross margin, but should contribute pretty well to the EBITDA margin, but we'll see. We have a -- they're just a little bit lower to that margin. And the nice thing, though, is that as Carrie mentioned, those are not capital-intensive business. They will cash flow immediately, so the return on that capital investment, which is just working capital really should be very good. So those 2 things, those cost savings and the efficiencies that we expect to get and a little bit lower margin business that we're seeing as a real growth driver. Those things will balance out. We expect to be. So kind of where we're at today or slightly increase over time.

Okay. And I guess, as the second part of this question regarding the expansion growth levers, that you touched on, are you evaluating other verticals beyond Oncology, Wound Care and Pain Management?

That's a great question. I would say, yes, we're always evaluating one of the opportunities. We've had other manufacturers, for instance, come to say, "Hey, help us as well, we have that payer contract portfolio that we can help manufacturers continue to grow. What we always want to do is look at what's reimbursement, right? What's the cost of that? What is reimbursement, who is the competition in that market. And today, we see such an opportunity in the space that we're in, both Wound Care as well as compression. We want to focus on what's right in front of us. We are keeping our eye from a strategic standpoint on what's next. So we are in conversation. We are always looking at the market again, what's that opportunity? What does reimbursement look like? Is there competitive bidding coming in a market? So it does take us to get -- we get a credited when we're interested in the new product. We go through accreditation process and are able to add those new codes and new products to our payer portfolio very easily. So yes, we are always looking at the next best thing as well.

Thank you. And I guess, with that in mind, revenues are growing by single digits. Can these new growth verticals increase that to higher, I guess, faster growth?

Yes. As I mentioned, we have a massive core in oncology. So they really maintain that single-digit growth. What we're seeing and we saw, we can see with the higher growth year-over-year in the Wound Care space in compression. The goal is really to continue to scale. We have those systems that allow us that faster claims processing, ability to scale, bring in more partners in that space. And the hope is really in the plan, and our strategy is really to continue -- we like double-digit growth certainly in the future. So Barry, I don't know if you have any comments on that?

Yes, I'd just say that the Wound Care has doubled the last couple of years, and we have a lot of runway left there.

That's right.

Can you tell us more about the business model for lymphedema market?